Contracts
An appraisal contingency in a Nebraska purchase agreement protects the buyer by:
AGuaranteeing the property will appraise at the purchase price
BAllowing the buyer to renegotiate or cancel if the property appraises below the purchase price✓ Correct
CRequiring the seller to reduce the price to the appraised value automatically
DProviding a 30-day extension if the appraisal is delayed
Explanation
An appraisal contingency allows the buyer to renegotiate the price, make up the difference in cash, or cancel the contract (and recover earnest money) if the property appraises below the contracted purchase price.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
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